Japan has signaled that it prefers a voluntary - rather than mandatory - carbon trading system to reduce greenhouse gas emissions.

Japanese industry is concerned that a binding target on emissions for big business would hurt growth and add to competition with international rivals.

A trial scheme next month will allow companies exceeding their target to buy credits from companies below their limit but without any binding limits.

Japan government insiders told Daily Planet Media that Japanese industry was philosophically opposed to the European Union cap-and-trade system that sets binding limits.

Targets would, however, be set on a company's total volume of emissions or as the amount of emissions per unit of production, according to a draft of a government plan.

Companies would be be permitted to trade credits from the Kyoto Protocol's Clean Development Mechanism which funds clean-energy projects in developing countries.

The State of the Planet

CARBON CONFUSION

posted to ClimateConcern by Eve